Can Employers Ask Interviewees For Their Wage Historical past?

As an employer, have you ever ever questioned whether or not you’ll be able to ask a possible worker about their wage historical past throughout a job interview? Or alternatively, as an worker, have you ever ever questioned whether or not an employer can ask you about your wage historical past throughout a job interview? It’s a query that’s generally requested, however is it authorized?

On this article, we’ll clarify whether or not employers can legally ask an worker for his or her wage historical past throughout a job interview, whether or not workers are required to reply questions relating to wage historical past, and solutions to different ceaselessly requested questions.

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Can employers legally ask for a possible worker’s wage throughout a job interview?

The quick reply is sure. Employers can legally ask potential workers about their wage historical past throughout a job interview. Australian Anti-Discrimination laws doesn’t ban questions which are used to collect particular details about a possible worker’s wage historical past. Moreover, Anti-Discrimination laws additionally doesn’t ban employers from asking questions that can be utilized for them to find out an worker’s wage historical past. 

As a substitute, Anti-Discrimination laws bans questions in regard to different traits of a person that aren’t related to whether or not they can carry out a job. Though it may be argued that an worker’s wage historical past is irrelevant in regard to figuring out whether or not an worker can carry out a job, anti-discrimination laws doesn’t prohibit employers from asking questions relating to wage historical past. 

As well as, Equal Alternative laws comparable to Victoria’s Equal Opportunity Act 1995 means that asking potential workers for past-Wage historical past might be moderately requested in a non-discriminatory method. For instance, an employer could select to ask interviewees about their wage historical past as a way to decide a good market wage, and so they can negotiate the market wage with workers through the interview course of. 

Nonetheless, this might quantity to discriminatory conduct beneath Fair Work Act 2009 if the interviewee finds a particular piece of proof or has an affordable perception that the interviewer was being unreasonable and unethical of their decision-making after discovering their wage historical past.

Whether it is discovered that an interviewer obtained wage historical past info for discriminatory functions (comparable to forming a prejudice based mostly or denying an interviewee alternative), it could be unlawful. Due to this fact, employers are usually suggested to keep away from asking an interviewee for his or her wage historical past as a result of this query might be unlawful relying on the explanation it’s being requested, and that is why there have been discussions about banning employers from asking about salary history.

In eventualities when employers ask a couple of candidate’s wage historical past, one of the best pursuits of the interviewer are balanced in opposition to one of the best pursuits of the enterprise. A enterprise could have an inherent bias in hiring high quality workers at a decrease wage as a result of the enterprise desires to save cash. Nonetheless, these claims are usually speculative and ambiguous.

Why do employers ask workers for his or her earlier wage historical past throughout job interviews?

There are a number of causes an interviewer could select to ask an interviewee for his or her wage historical past. Two main causes embody the next: 

• A main motive most interviewers ask an interviewee for his or her wage historical past throughout an interview is as a way to decide the interviewee’s ‘market price ticket’ 
• Interviewees additionally generally ask an interviewee for his or her wage historical past in order that they’ll negotiate a wage vary relying on an worker’s talent degree 

In case you are a potential interviewee, we suggest that you just test your employment settlement to find out whether or not there’s a contractual time period contained in your employment contract that forestalls you from disclosing your previous earnings and wage historical past to interviewers.  

Moreover, you need to test whether or not there’s an enforceable and legitimate pay-secrecy clause in your employment contract that may stop you from disclosing your present wage. 

What’s discrimination in interviews?

The Australian Human Rights Commission defines discrimination as when a person or a bunch of people are negatively handled in comparison with different people or teams of people on the premise of their background or particular person attributes. 

For instance, an employer would possibly select to not rent a certified candidate on the premise of their race, and they’ll select to rent a person from a unique race even when they’re much less certified for the place.

What can’t employers ask workers about throughout job interviews?

Section 351(1) of the Fair Work Act 2009(Cth) outlines the grounds on which employers are prohibited from discriminating in opposition to potential workers on the premise of. These embody the next:

• Race
• Color
• Intercourse 
• Sexual choice 
• Age 
• Bodily or psychological incapacity
• Marital standing
• Household or carer obligations
• Being pregnant
• Faith
• Nationwide extraction or social origin

This part of the Truthful Work Act can be supported by different legislative Acts, together with the next:

Nonetheless, there are some exceptions to part 351(1) contained in section 351(2) that enables discrimination based mostly on these grounds within the following circumstances:

• The place taking the motion was required by the job’s important necessities
• The place the motion will not be unlawful in accordance with every other anti‑discrimination laws that’s in pressure within the location the place the motion was taken

In response to Australian laws, interviewers could ask interviewees for info to find out their capacity to carry out a job whether it is moderately wanted for non-discriminatory functions. 

How does discrimination apply to questions relating to Wage Historical past?

To reply this query, the very first thing that should be mentioned includes what info interviewers obtain when they’re supplied with an interviewee’s wage historical past.

An interviewee’s wage historical past can embody the next info:

• The names of every firm they’ve labored for 
• The job titles they’ve had
• The wage(pay) they have been receiving for every earlier place
• The advantages they have been receiving with every place 
• The entitlements they have been receiving with every place 
• The areas they have been working in
• Whether or not they had any wage deductions

An interviewee’s wage historical past doesn’t mirror their worth within the new place, as each job task is totally different. Moreover, it doesn’t present potential employers how good they have been at their jobs, their ardour, enthusiasm, their capacity to work in a crew, or the expertise the interview has, as there are overpaid and underpaid folks throughout the market.

Due to this fact, it appears cheap to conclude that wage historical past isn’t fully related to an worker’s job efficiency.

What do I do if I’m requested about my Wage Historical past?

You’ll be able to select to reply questions on your wage historical past, or you’ll be able to select to politely decline the interviewer’s query. For those who select to say no the query, the interviewer could also be extra inclined to elucidate why they should know your wage historical past, making the query extra moral and fewer discriminatory. 

Alternatively, you can too select to supply a versatile reply by placing ahead a wage vary. For instance, you might state, “I’m incomes within the mid-fifties,” or maybe give them a variety of two numbers to work with.

As an interviewee, you ought to be conscious that it’s unethical and unwise to lie about your wage historical past if requested. Doing so might backfire if the interviewee discovers your precise wage historical past or verifies it. A serious drawback of offering your wage historical past to an worker is that it might present your potential worker with a leg up within the wage negotiation course of.

Particularly, that is true because it’s extremely unlikely that your potential employer will offer you info relating to the enterprise’ current earnings, financial worth, and so forth. As an interviewee, it’s vital for you to concentrate on your rights to be able to establish doubtlessly discriminatory or unethical questions throughout your interview or recruitment course of. 

What can workers do if they’ve been discriminated in opposition to throughout a job interview?

As an worker, should you consider you have got been discriminated in opposition to throughout a job interview, you can also make a declare to the Australian Government’s Fair Work Ombudsman(FWO) on-line or by calling them. Equally, you can also make a declare with the Fair Work Commission(FWC), or you’ll be able to search help from the Australian Human Rights Commission (AHRC) or every other related anti-discrimination physique.

For a declare to be legitimate, an interviewee would wish to both:

• Determine the interviewer’s illegal query or;
• Discover a particular piece of proof that moderately infers discrimination on behalf of the interviewer both through the interview or in post-interview dialogue/decision-making

If a declare is discovered to be legitimate, the FWO will examine and doubtlessly file a lawsuit for illegal office discrimination in opposition to the employer for breaching the Truthful Work Act. If the motion is discovered to be discriminatory, the employer will face penalties, and the possible worker shall be awarded a treatment.

Conclusion 

Finally, as an interviewee, you ought to be conscious that interviewers can legally ask you in your wage historical past, however you aren’t required to reply the query. As an employer, you ought to be conscious that you would be able to ask interviewees about their wage historical past. Nonetheless, you’ll be able to’t ask this query for discriminatory functions.

For those who’re an interviewee and also you consider you have got been requested about your wage historical past for discriminatory functions, you need to rent a lawyer for authorized recommendation to find out whether or not you’ll be able to take motion in opposition to the employer who has doubtlessly discriminated in opposition to you. 

Alternatively, should you’re an employer and also you’re nonetheless uncertain about whether or not you need to ask your potential workers about their wage historical past, you must also rent a lawyer for authorized recommendation to keep away from potential authorized penalties.